Remorse,’ Not Hubris’ to Drive M&A’s, Putnam Says

NEW YORK  "Remorse and disgrace" rather than "hubris" is what is driving the investment management M&A business, Donald Putnam, managing director of Putnam Lovell NBF Securities, said yesterday.

Divestiture rather than acquisition is likely to continue as the prime driver for M&As, few as they are, Putnam told executives gathered for Money Management Institutes annual convention here. Valulations and volume in the money management investment banking industry have dropped precipitously. Coming off an average of 80 to 100 transactions a year in the late 1990s, there were only 14 transactions averaging $31 billion in 2001, and a mere five, with $9 billion being the top price, for the Deutsche/ Fleming deal, in 2002, Putnam said.